conarb
REGISTERED
This building is the only landmark in a suburban town, if the city did buy it for cultural reasons then the taxpayers would have to pay for all losses and all insurance and receive no property taxes and that $30,000 would probably skyrocket with structural and fire sprinkler requirements. They say $30,000 for ADA but when they go to get the permit to do the work in a 1957 building I think they will have a rude awakening. BTW, this theater sits a few hundred feet from that hamburger joint where I reported going to lunch several years ago only to find the sprinklers had gone off during the night due to an overheated air handler on the roof drowning two restaurants causing millions in damage.\ said:MORAGA -- The New Rheem Theatre will go dark June 30 following a rent increase its operators say they can't afford.
Zemrak said he learned Saturday about the 60 percent hike, an increase from $5,000 to $8,000 per month. Notice of the rent increase was shown on the Rheem's iconic art deco marquee over the weekend, alongside a brief announcement that the theater is being forced to close soon.
Despite what he characterized as an amicable relationship with property owner Mahesh Puri, Zemrak said he was surprised by the steep increase.
However, he acknowledged Puri has helped keep the Rheem afloat for nearly five years.
"Four and half years ago, (the owner) lowered our rent and never raised it, which helped the theater stay open and operate," Zemrak said. "Mr. Puri basically subsidized the rent for over 4 1/2 years."
According to attorney David Bowie, who is representing Puri, the property owner can no longer continue to help fund the theater.
In addition to $30,000 worth of improvements to the Rheem stemming from an Americans with Disabilities Act lawsuit, other factors are driving the rent increase, including maintenance, property taxes and insurance.
Puri, Bowie said, is "upside-down" on the property, and theater operators don't have enough business to sustain the rent.
Saying the theater operates on a very small margin, Zemrak acknowledged that revenues outweigh costs some months, but costs exceed revenue during others. Independent and community theaters like the Rheem are closing across the country.¹
¹ http://www.contracostatimes.com/breaking-news/ci_28240900/moragas-new-rheem-theatre-close